TechCapsules

AI-summarised brief · reviewed before publication

Alphabet's Google is set to express its concerns to EU antitrust regulators and critics that the European Union's rules aimed at reining in Big Tech are hindering innovation, ultimately affecting European users and businesses. The US tech giant will urge regulators to provide more detailed guidance on complying with the rules and ask its critics to provide evidence of the costs and benefits to support their case. Google is facing pressure to address charges under the EU's Digital Markets Act, which accuses the company of favoring its own services, such as Google Shopping, Google Hotels, and Google Flights, over rivals. If found guilty, Google could face fines of up to 10 per cent of its global annual revenue. Earlier this month, Google proposed changes to its search results to better showcase rival products. However, critics argue that these changes do not ensure a level playing field. According to a copy of a speech by Google's lawyer, Clare Kelly, the company's existing changes have resulted in European users paying more for travel tickets as they can no longer directly access airline sites. Kelly will express Google's concerns about the real-world consequences of the Digital Markets Act, which are leading to "worse online products and experiences for Europeans." Additionally, Kelly will highlight that European airlines, hotels, and restaurants have reported a loss of up to 30 per cent in direct booking traffic, while users have complained about clunky workarounds. Google's other lawyer, Oliver Bethell, will request regulators to provide precise guidance on compliance and ask critics to come up with concrete evidence. Bethell will emphasize the need to understand what compliance looks like in practice, taking into account real-world experiences.